Hafeez invested Rs. 15,000 at an annual interest rate of 10%, compounded semi-annually. What will be the total amount he receives after one year?

Compound Interest MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Compound Interestmathematics-mcqs › compound-interest
Published
23 Sept 2019
Last updated
28 May 2026

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Explanation

Given the principal amount of Rs. 15,000 and an annual interest rate of 10%, compounded twice a year, the half-yearly interest rate is 5%. For one year (which equals two half-year periods), the amount is calculated as: Amount = 15000 × (1 + 0.05)^2 = 15000 × 1.05 × 1.05 = Rs. 16,537.50.

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